TWO Lopez-led companies—First Philippine Electric Corp. (First Philec) and First Philippine Realty Corp.—have converted into cash their preferred shares bought last November from listed power and infrastructure conglomerate First Philippine Holdings Corp. (FPHC) as part of the latter’s initiative to increase the company’s capital.

First Philec and First Realty bought a combined P3 billion worth of preferred shares, out of FPHC’s total P20 billion issuance.

“First Philec and First Realty subscribed to series A preferred shares in FPHC. FPHC has redeemed the series A preferred shares of First Philec and will likewise be redeeming those of First Realty. The redemption should help allow both companies pursue their growth and expansion plans.

For First Philec, the focus will be on its manufacturing businesses, including the wafer slicing (for solar power panels) business which is being developed in joint venture with Sunpower Philippines Manufacturing Ltd., an affiliate of Sunpower Corp., a company based in the US,FPHC said in a disclosure to the stock exchange Thursday.

FPHC’s issuance involved 200 million shares with a par value of P100 each, raising its authorized capital from P12.1 billion to P32.1 billion.

The entire proceeds from the issuance will be used for various corporate purposes, such as further acquisition of shares in Meralco, First Gen Corp. and Manila North Tollways Corp. as well as for new strategic investments in infrastructure, manufacturing and property and the refinancing of existing debts.

Prior to the issuance, FPHC secured a $220-million syndicated loan facility to also fund the acquisition of shares in Meralco.

The loan, arranged by BDO Capital and Investment Corp., has peso and dollar components.

“The peso component will carry a maturity of seven years while the dollar component will mature in five years,” the company said earlier.

The loan proceeds were used to acquire the respective stakes of Spanish utility firm Union Fenosa and Meralco Pension Fund in the power distribution utility firm. The purchase of Meralco Pension’s 6.6-percent stake was completed in 2007, while the 9.1- percent ownership of Union Fenosa was finalized last month.

The purchase of these stakes has expanded FPHC’s ownership in Meralco from 17.7 percent to 33.4 percent.

A PUBLICLY listed mining company is alloting P1.5 billion to support current operations in its Benguet facility and explore for gold and copper in Negros, Surigao, Zamboanga and Madagascar in Africa, its first direct investment abroad.

Lopez entities convert shares

TWO Lopez-led companies—First Philippine Electric Corp. (First Philec) and First Philippine Realty Corp.—have converted into cash their preferred shares bought last November from listed power and infrastructure conglomerate First Philippine Holdings Corp. (FPHC) as part of the latter’s initiative to increase the company’s capital.

THE Philippines’ largest telecommunications company has delayed its planned upgrade to its New Generation Network (NGN)—which, like the Internet, transmits voice, data and video in packets—while it addresses congestion issues within its current system.

AN Information technology company will be setting aside P200 million for capital expenses, bulk of which will be spent on the construction of its building at the South Luzon Expressway.

THE Philippine Stock Exchange Index lost 4.99 or 0.2 percent, to 3,176.06 at the close in Manila, reversing earlier gains. The following are among the most active stocks in the Philippine market Thursday.

PUT it down perhaps to the Year of the Rat. Things are certainly picking up for the Tan Yu Group and its Philippine head, Elena Tanyu Coyiuto.